topic Itemized tax in Get your taxes done using TurboTax

Itemized tax

DS44325 — Sun, 09 Feb 2025 13:33:36 GMT

Hello,

I have three questions:

1- As a single person, can I claim the co-pay/deductibles of all my doctors' bills and medical procedures under" medical expenses" and ask for the itemized tax, not the standard one?

2- I converted my "traditional IRA" account to the "Roth IRA" account as my former employer closed the traditional account. I already paid the tax for the traditional and again, I am paying tax for the Roth (which is ok). My question is how I can make sure that I am taxed for the difference rates of Roth and traditional and not again on the total and converted fund from traditional to Roth.

3- Would claim the amount of money/tax I paid to the Roth account in 2024 help to reduce or increase my tax refund?

Thank you!

Re: Itemized tax

JohnB5677 — Sun, 09 Feb 2025 16:16:30 GMT

1. Yes, you can claim all of your medical expenses, but there are some significant restrictions.

Medical expenses Limit: You can only deduct the amount of your medical and dental expenses that is more than 7.5% of your AGI.
These are the Acceptable Medical and dental expenses include as expenses.

2. The distribution from the Traditional IRA should be taxed, but only once.

You did not pay taxon that Traditional IRA contribution.
When entering the 1099-R information, follow these steps

Under Federal
Select Wages & Income
Scroll to and select IRA, 401(k), Pension Plan Withdrawals (1099-R)
Now Edit or Add another 1099-R
Continue the interview to the question
Tell us if you moved the money through a rollover or conversion
I converted some or all of it to a Roth IRA
If you had taxes taken out
No, I converted less than $XXX XXX
Post the Actual amount converted

3. If you had taxes withheld when you withdrew the Traditional IRA, it will reduce your tax burden.

If you're referring to a penalty charge (That you had withheld) it would also reduce the tares owed.
If I misunderstood this question, please give a clarification.

Re: Itemized tax

DS44325 — Sun, 09 Feb 2025 17:31:11 GMT

Thank you for the detailed information.

Following up on 1099-R, the traditional IRA account was ~$3570 and currently, I owe $781 for the federal tax and ~150 for the state tax. Do these taxes make sense? (781/3570)=21%....The traditional account was in State A and I live in State B. Does it matter? Should I be taxed for 1099 based on state A and not B?

Regarding question 3, I was confused by a section called "Traditional IRA and Roth IRA" and asked if I had any ROTH or traditional contributions in 2024. I had only ROTH in 2024.

It then asks for the "repayment of a retirement distribution" ...not sure what this is... then Enter your ROTH IRA contribution....Why should we state the Roth contribution here? Does it help me to get a break or again increase the tax? I even don't know how much I contributed in 2024 for Roth as I had three employers. Should I enter all the details or can I skip this?

I have an additional question regarding the state tax in NY. I worked only for two weeks in NYC (did not move there officially and stayed at a friend's house). I got $2808 and paid $303 for federal and $132 state tax for it. Turbotax calculated an additional ~$150 state tax for me in NY as due. Isn't that wrong? I mean when I check the details, TurboTax considered the entire AGI for the NY tax purposes while it should be only $2808. Am I wrong? I believe I should be taxed only for 2808 for the NY state tax purpose and not the entire AGI. how can I fix it?

Best,

Re: Itemized tax

JohnB5677 — Sun, 09 Feb 2025 18:10:59 GMT

Regarding question 3: If the contributions are to an employer provided plan you do not have to report it. You only have to record contributions to an IRA or Roth that you do personal. You will have to report all withdrawals.

The tax May be wrong, but how did you report the income.

Do boxes 16 - 20 reflect an amount on your W-2?
Does the W-2 reflect your home state?
Did you indicate you were a part year resident of NY, or leave it blank?

Re: Itemized tax

DS44325 — Sun, 09 Feb 2025 22:06:54 GMT

Regarding the NY (state C) tax, I set it as nonresident and not part-time resident. Boxes 16 and 17 have numbers. Boxes18, 19, 20 are empty. Again, I did not live in NY but stayed at a friend's place for about 10 days. Do I need to pay for the local, state tax of NY?

Could you clarify it again as I am not sure what you exactly meant?

I had a traditional IRA in state A in 2018 from employer A. Employer A closed my traditional IRA account (as I no longer worked for them) and left the money in an undefined account type on Fidelity. I took the ~3570 and opened a new personal Roth IRA account on Fidelity when I resided in State B (home state). So, I am taxed for 21% on that money (~$3570) and I was thinking where this 21% would come from for a Roth IRA account that I opened. Should it be about 7% which is my home state's (State B) tax rate and not 21%? Maybe the ROTh tax rate is different than the state tax rate??

Re: Itemized tax

DS44325 — Wed, 12 Feb 2025 10:31:50 GMT

@JohnB5677

Any comments?

Re: Itemized tax

JohnB5677 — Mon, 17 Feb 2025 17:56:20 GMT

You are correct to select Non-Resident.

Did you pay tax in 2018 when you withdrew the IRA and put it in a Undefined account with Fidelity? Or was this an IRA account with Fidelity?

If this was coming from an IRA in Fidelity, you should be taxed on the full IRA on the Federal and by the state.

If you never were a resident of NY you will be taxed in your home state. You would not include it on the NY tax return.

@DS44325

Re: Itemized tax

DS44325 — Sun, 02 Mar 2025 13:01:30 GMT

Hi,

So, I was working for a company in 2018 and had 401k (not sure if it was traditional or Roth but I guess it was traditional). I did not follow up with that account until 2024. Fidelity automatically closed my account and put the money in a Rollover IRA account. So, in 2024, I opened a new ROTH IRA and transferred money from Rollover to a Roth IRA.

So, do I need to pay tax for the entire RolloverIRA amount? How can I know my original account was traditional, Roth, or a mix of both?

[[If you never were a resident of NY you will be taxed in your home state. You would not include it on the NY tax return.]] Do you mean that I do not need to file a NY state tax form?

Thank you!

Re: Itemized tax

JohnB5677 — Sun, 02 Mar 2025 21:49:02 GMT

You have multiple questions. I'll try to answer each one by one.

1- As a single person, can I claim the co-pay/deductibles of all my doctors' bills and medical procedures under" medical expenses" and ask for the itemized tax, not the standard one?

Yes, it can be included in your 2024 Medical expenses.
If the your Itemized deductions exceed the standard deduction ($14,600 for Single) the itemized deduction will be automatically taken.
Medical expenses Limit:

I expect you had 20% withheld from your distribution. That is you tax payment.
The ROTH conversion will calculate the tax that you owe.
The withholding should offset the calculated tax obligation.
This is not taxed twice.

3- Would claim the amount of money/tax I paid to the Roth account in 2024 help to reduce or increase my tax refund?

The withholdings on your 1099-R will offset the amount of tax that you owe. It will reduce the taxes you owe.

4.- So, I was working for a company in 2018 and had 401k (not sure if it was traditional or Roth but I guess it was traditional). I did not follow up with that account until 2024. Fidelity automatically closed my account and put the money in a Rollover IRA account. So, in 2024, I opened a new ROTH IRA and transferred money from Rollover to a Roth IRA.

There will be no tax on the initial rollover of the company 401-k to the Fidelity account.
There will be a tax due on the conversion of the Fidelity IRA to the Roth

5.- So, do I need to pay tax for the entire Rollover IRA amount? How can I know my original account was traditional, Roth, or a mix of both?

Most company 401-K are traditional.
Did your wages show a decrease because of the 401-K
Fidelity would confirm ahead of time that it was traditional.

6.- [[If you never were a resident of NY you will be taxed in your home state. You would not include it on the NY tax return.]] Do you mean that I do not need to file a NY state tax form

You will need to report the sale on your New York State return and pay any applicable taxes on the gain that exceeds the federal exclusion.
If this was not your primary home you would report the sale on Form 1040, Schedule D (Capital Gains and Losses),